Telangana State Finance Minister Etala Rajender on 14 March 2016 presented the State Budget for the financial year 2016-17 in the legislative assembly.
Though the Budget for 2016-17 is the third Budget of the State since its formation 2 June 2014, it is the first Budget to be prepared after a comprehensive review of all items of expenditure and a realistic assessment of resources based on the facts and figures.
• The budget was built on the vision of Bangaru (Golden) Telangana. For this purpose an outlay of 130415 crore rupees were proposed. Out of this planned expenditure is 67631 crore rupees. The budget size for 2015-16 was 115000 crore rupees.
• GSDP is estimated to grow at 11.7 percent in 2015-16 at current prices. This growth rate is more than the national average of 8.6 percent.
• The fiscal deficit was estimated at 23467 crore rupees or 3.5 per cent of the Gross State Domestic Product (GSDP) for 2016-17. Lower than 4 percent deficit can be achieved on account of surplus in the revenue account.
• Revenue receipts are proposed at 72412 crore rupees in 2016-17 as compared with 54256 crore rupees in 2015-16.
• Transfers from the Centre proposed at 28512.52 crores as compared to 25223 crore rupees in 2015-16.
• The per capita income of the State at current prices improved by 12.7 per cent in 2014-15 to 129182 rupees and is estimated to further improve by 10.7 percent to 143023 in 2015-16, much higher than the national average of 93231 rupees.
General Highlights of the Budget
• Irrigation: It is the major beneficiary of the Budget. The ultimate objective is to provide irrigation water to every acre of cultivated land in the State and making agriculture in the State totally drought-proof.
• For the construction of irrigation projects and Mission Kakatiya, the amount proposed in 2016-17 is 25000 crore rupees.
• 7861 crore rupees allocated for Palamuru Rangareddy lift irrigation scheme, 6286 crore rupees for Kaleshwaram project and 1152 crore rupees for Sitharama and Bhakta Ramadasu lift irrigation projects.
• Agriculture and allied sectors: A total of 6759 crore rupees allocated to this sector.
• Government proposed to cover 600 SC and ST farmers under poly house cultivation in 2016-17 with 100 percent subsidy.
• Telangana State Horticulture Development Corporation will be set up to promote cultivation of horticulture crops, procurement, storage, processing and marketing of horticulture produce. It will also facilitate implementation of water saving technologies like micro irrigation.
• Medical and health sector: Stabilisation, standardization and consolidation of medical and health services in the State are the main focus areas in 2016-17. 5967 crore rupees allocated for this sector.
• About 40 Dialysis and 40 Diagnostic centres are also proposed.
• Community Health Centres will be transferred to Telangana Vaidya Vidhana Parishad for better administration.
• Housing: Two lakh two-bedroom houses will be constructed in 2016-17. Funds will be raised in the form of loans from the Housing and Urban Development Corporation (Hudco).
• Special Development Fund: The fund will be set up with 4675 crore rupees to allow ministers and MLAs to take up impromptu developmental works.
Sector wise allocation of funds
• Irrigation projects - 25000 crore rupees
• Mission Bhagiratha - 40000 crore rupees
• Health sector - 5967 crore rupees
• Education sector – 10738 crore rupees
• SC welfare - 7122 crore rupees
• ST welfare - 3552 crore rupees
• BC welfare - 2538 crore rupees
• Aasara pensions - 4693 crore rupees
• Kalyana Lakshmi scheme - 738 crore rupees
• Women and Child Welfare - 1553 crore rupees
• Brahmin Welfare Corporation - 100 crore rupees
• Roads and Buildings - 3333 crore rupees
• Panchayat Raj and Rural Development - 10731 crore rupees
• Urban Development - 4815 crore rupees
• Industries - 967 crore rupees
• IT and Communications - 254 crore rupees
• Special Develpment Fund - 4675 crore rupees
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Where: State Legislative Assembly
When: 14 March 2016
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